Bankruptcy can be a Good Solution
Bankruptcy is always the last solution, a serious solution. But the end is also the start of a new beginning. Every day approximately 165 Canadians bring a stop to their personal financial difficulties by filing bankruptcy.
In British Columbia, 21 people a day file bankruptcy. These are honest, hard working people that for one reason or another find themselves overwhelmed with financial problems and recognize that they can no longer fight the debt battle on their own.
When all methods of debt management have been exhausted, creditors are calling, you have missed mortgage or loan payments.
It is time to:
Talk with & Meet the Licensed Insolvency Trustee
In order to declare bankruptcy you must work with a Licensed Insolvency Trustee.
When selecting your trustee, you should keep the following in mind:
- Your trustee should be local and easy to access.
- You should feel comfortable and at ease with your trustee.
- Ask them questions about your situation and make sure you understand their answers.
- Ask them for references or testimonials from previous clients
- Confirm they are licensed by the Superintendent of Bankruptcy
Who Can File Bankruptcy
The qualifying for bankruptcy is quite simple, when your financial obligations are no longer being met, bankruptcy will protect you from your creditors.
You can file bankruptcy if:
- You are not presently bankrupt
- You owe at least $1000.00
- You are unable to meet your payment requirements
- Your liabilities out value your assets. ( if you sold your assets, you would not be able to pay off all your debts)
How to File Bankruptcy
You can not file bankruptcy on your own in Canada. There is a legal process and we will be there with you every step of the way.
Here is how we do it:
- We will prepare a Statement of Affairs which lists all of your assets, creditors, income, expenses, and other pertinent information
- After you file bankruptcy, most creditors are no longer able to pursue you for collection of their accounts ( talk to us about the exceptions, such as family support and student loans)
- There maybe a request to attend a bankruptcy interview with the Official Receiver who is a government official
- You will be required to attend two financial counselling sessions, our sessions are designed to make sure that we help rehabilitate your financial patterns
- You may have assets which you will not be allowed to keep, we will work with you to smoothly transfer the ownership if required
- You will need to report your income and expenses on a monthly basis, and make payments if required, based on how much you earn, the size of your family and your circumstances. This payment is called your surplus payment
- You will be automatically discharged from bankruptcy in nine months if this is your first bankruptcy, your surplus payment is less than $100, you have met all your obligations and there are no objections. ( If your surplus payments is $100 or greater, your discharge will be in 21 months).
We are non judgmental advisers experienced in finding the best solution for you. Let’s talk today.